After activating the trading platform, each newcomer immediately has an overwhelming desire to open his first order. The first question of a novice trader, on which currency pair to choose?
If before entering the real amount on deposit there was a period of participation in trading on a demo account, then at least there is a minimal idea of the movement of currency pairs and the expected trend, then the choice will be more meaningful.
In most cases, the start of participation in trades occurs at that moment of activation of the deposit and the choice of a currency pair is reduced to superficial information obtained from the media and voiced forecasts.
The main currencies: dollar, pound, euro are most widely covered by the press, but the information and forecasts of TV or the Internet are the distant past for a dynamically changing Forex rate.
It is preferable to open an order in the selected currency pair during the activity of the leading trading floors that use this currency. Active trading on a regional currency exchange, first of all, has a significant impact on the currency of this region and affects the other currencies of the world.
Currency pairs involving the euro, dollar, pound attract most professional traders who have large deposits that can have a significant impact on the trend movement, regardless of the publication of the economic indicators of the moment.
Secondary currency pairs, where AUD (Australia), NZD (New Zealand) appear, are more predictable and uniform in their movement. The revenue part of the orders in these currencies is somewhat less, but the probability of going into the minus is also negligible.
A novice trader must follow a few rules:
- When activating the trading platform, be sure to set indicators and perform technical analysis.
- Relate your time of day to the activity of trading on the leading trading floors for the selected currency pair.
- See the time of expected publications (announcements) for the next day of statistical data, decisions of leading world politicians about the country’s future economic course, about current investor sentiments.
Whichever currency pair you choose, whatever the size of your deposit, you should open 1-2 orders at the rate of using 30% of the deposit amount as the collateral amount. In this situation, even with an unfavorable trend movement, it is still possible to wait for the price reversal and make a profit.
The choice of a currency pair can be based on the desire to try yourself and make a profit without a long wait. Then it is preferable pair GBP / USD, EUR / AUD, USD / JPY. If you want to test your chosen strategy and ability for long-term forecasts, currency pairs EUR / CAD, AUD / USD, NZD / USD are better suited.